Questions from Individual Taxation

Q: What are some of the taxes that currently are unique to state

What are some of the taxes that currently are unique to state and local governments? What are some of the taxes that the federal, state, and local governments each utilize?

Q: Chandler Corporation reported pretax book income of $2,000,

Chandler Corporation reported pretax book income of $2,000,000. Tax depreciation exceeded book depreciation by $500,000. During the year the Company capitalized $250,000 into ending inventory under...

Q: Davison Company determined that the book basis of its office building exceeded

Davison Company determined that the book basis of its office building exceeded the tax basis by $800,000. This basis difference is properly characterized as: a. A permanent difference b. A taxable tem...

Q: Abbot Company determined that the book basis of its allowance for bad

Abbot Company determined that the book basis of its allowance for bad debts is $100,000. There is no corresponding tax basis in this account. The basis difference is properly characterized as: a. A pe...

Q: Which of the following items is not a temporary book-tax

Which of the following items is not a temporary book-tax basis difference? a. Warranty reserve accruals. b. Accelerated depreciation. c. Capitalized inventory costs under §263A. d. Nondeductible stock...

Q: Which of the following book-tax differences does not create a

Which of the following book-tax differences does not create a favorable temporary book-tax basis difference? a. Tax depreciation for the period exceeds book depreciation. b. Bad debts charged off in t...

Q: Lodge, Inc. reported pretax book income of $5,

Lodge, Inc. reported pretax book income of $5,000,000. During the year, the company increased its reserve for warranties by $200,000. The company deducted $50,000 on its tax return related to warranty...

Q: Which of the following book-tax basis differences results in a

Which of the following book-tax basis differences results in a deductible temporary difference? a. Book basis of a fixed asset exceeds its tax basis. b. Book basis of a pension-related liability excee...

Q: Which of the following items is not a permanent book/tax

Which of the following items is not a permanent book/tax difference? a. Tax-exempt interest income. b. Tax-exempt insurance proceeds. c. Domestic production activities deduction. d. Non-deductible mea...

Q: Ann Corporation reported pretax book income of $1,000,

Ann Corporation reported pretax book income of $1,000,000. Included in the computation were favorable temporary differences of $200,000, unfavorable temporary differences of $50,000, and favorable p...